Lloyd Howell’s new role as the executive director of the NFL Players Association took an unexpected turn with a jaw-dropping financial loss. In a recent ruling, the association has been instructed to pay a whopping $7 million to Panini following an arbitration decision over the termination of their exclusive trading card contract last year, as reported by Eriq Gardner of Puck.news.
The root of the conflict traces back to the NFLPA’s decision to terminate its contract with Panini after several key employees jumped ship to rival company Fanatics. Citing a “change in control” clause to justify their move, the NFLPA claimed they were within their rights to break the contract. However, Panini countered that this was merely a facade to switch sides to Fanatics, a claim that the arbitrators ultimately sided with.
David Boies, Panini’s attorney, pointed out, “The unanimous decision of the arbitrators confirms what we have said from the beginning: The NFLPA’s termination of its contract with Panini violated its legal obligation to Panini, its moral obligation to fans and collectors, and its fiduciary duties to its members.” Boies went on to highlight the significant financial repercussions of the NFLPA’s actions, noting that the damages would have been far more substantial if not for Panini’s efforts to continue providing cards despite the association’s attempts to sever ties.
While Fanatics was not directly involved in the arbitration process, Panini has taken legal action against them with a separate antitrust and tortious interference lawsuit. Despite repeated requests, the NFLPA has remained silent on the matter, leaving many unanswered questions swirling in the trading card community.
The fallout from this arbitration ruling extends beyond the financial implications, casting a shadow over the NFLPA’s decision-making process and their responsibilities to their members, fans, and the larger trading card industry. The association now finds itself in a precarious position, facing scrutiny and potentially damaged relationships as a result of this costly misstep.
